Vladimir Okhotnikov debunks myths about cryptocurrencies

Vladimir Okhotnikov: 3 Myths About Crypto That You Shouldn’t Believe

An article has been released called "Cryptocurrency mythology". The common misconceptions surrounding digital money are debunked.

Since the advent of cryptocurrencies, many stereotypes have developed. Vladimir Okhotnikov outlined three key facts about crypto. In particular, the article analyzes the statements regarding the lack of real value security, unreliability and excessive volatility of financial instruments.

Vladimir Okhotnikov in search of crypto truth: debunking myths about cryptocurrencies

The first and most common myth about cryptocurrencies is the lack of real value security. Indeed, unlike fiat money, Bitcoin and other cryptocurrencies are not formally backed by any assets.

The crypto-analyst Vladimir Okhotnikov spoke about this. He notes that “currently, fiat money issued by central banks also essentially has no backing other than the honest word of the state.”

After the dollar was untied from gold in 1971, fiat money was no longer backed by the precious metal or other assets . Since then, its value has been supported solely by trust in central banks and state governments.

In reality, the value of fiat and crypto is determined by supply and demand in the market. Both are essentially fiduciary money, that is, money that is not backed by anything other than people’s trust in it. Thus, the first myth about cryptocurrencies turns out to be false. Yes, Bitcoin has no real value security, but neither do fiat currencies. Both of them are not backed by real assets. 

The second myth concerns the reliability of cryptocurrencies. it is believed that cryptocurrencies are extremely unstable and could collapse at any time 

“"In terms of reliability, cryptocurrencies are not only equal to "paper" money, but also surpass them. Until now, no one has been able to hack the Bitcoin blockchain which cannot be said about banks,” writes Vladimir Okhotnikov.

The decentralized nature of the blockchain makes cryptocurrencies resistant to censorship attempts by governments and regulators. While examples of government intervention in the operation of the banking system are known in many countries.

Another myth has been debunked: “In practice, cryptocurrencies demonstrate high technological reliability and resistance to external threats.”

To understand Vladimir Okhotnikov’s position on the third myth, we recommend that you read the original article "Cryptocurrency mythology", is very clear on this issue.

About Vladimir Okhotnikov 

Vladimir Okhotnikov is a well-known crypto enthusiast, analyst, IT-developer and specialist in the field of virtual reality. He was one of the first to become interested in blockchain technology and the possibilities of cryptocurrencies. In addition to his passion for cryptocurrencies, Vladimir is actively developing the direction of virtual and augmented reality.

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